Reposted from ArizonaHOA.blogspot.com
The “Arizona HOA Honey Moneypot“ – why all these problems in Arizona HOA’s?
- Honey attracts bees. Money attracts the worst of behavior
- It’s the cash stupid!
- We estimate that $3bn of CASH is sloshing around in HOA bank accounts owned by YOU
- Worst example which went unnoticed in the excesses 2008 financial crisis
- Community Association Banc (CAB), a division of First National Bank of Arizona (“FNBA”) attracted over $1bn of deposits in the months prior to 2008
- Only $75mm was funneled back to communities
- Only the FDIC knows where the rest went
- They used wholesale deposit harvesting via HOA Management Companies
- Few Boards even knew or know where their cash is
- The only credentials of the President of CAB, a $1.5 billion plus bank, were membership of CAI, HOA management, and ownership of Las Vegas nightclub
- I’m not making this up – See this – click HERE
- When FNBA went under in the shadow of IndyMac, the Federal Government injected $862mm of FDIC taxpayers money
- In a highly unusual step, they also bailed out UNINSURED DEPOSITORS
- Many Arizona HOA’s had millions in excess of the FDIC insurance limit
- We believe the decision was political
- What this got to do with you?
- Be aware there are powerful dark forces at work in the HOA industry
- Few Management Companies, and none of the so called specialized HOA Law firms, have incentives to promote transparency
- The Edge at Grayhawk lost $2.4mm in fraud because nobody was keeping an eye on the Management Company
- CAI , a national organization, has huge lobbying power because of their access to money
 Not to be confused with National Bank of Arizona